OCONUS Cost of Living Allowance (OCONUS COLA)

Start Here If You Are New to OCONUS COLA

OCONUS COLA is a non-taxable allowance offsetting the higher prices of goods and services (excluding housing) in foreign countries, U.S. territories, Alaska, and Hawaii. The OCONUS COLA index measures how much more expensive goods and services are at the OCONUS location compared to the CONUS average. The allowance equalizes purchasing power so a Marine stationed OCONUS purchases the same level of goods and services as in CONUS.

This page walks you through OCONUS COLA from your seat as a General Marine. By the end you will know.

• The non-taxable nature of OCONUS COLA
• The OCONUS COLA index framework. 100 means no COLA. Higher index means more expensive
• The with-dependent and without-dependent rate distinctions
• The reduced rate when Government quarters and dining facility are available
• The start and stop dates and the home port change rules

Every fact on this page comes from DoD 7000.14-R Volume 7ADoD 7000.14-R Volume 7A Chapter 68 (January 2025), Title 37 U.S.C. section 405Title 37 U.S.C. section 405, and the DoD Overseas Station and Housing Allowance Process Guide.

What OCONUS COLA Is

Per Chapter 68 paragraph 1.1, OCONUS COLA is a non-taxable allowance that offsets the higher prices of goods and services, excluding housing, in foreign countries, U.S. territories, Alaska, and Hawaii.

OCONUS COLA equalizes purchasing power so that a Marine purchases the same level of goods and services OCONUS as the Marine would if stationed in CONUS.

In addition to OCONUS COLA, station allowances in Chapter 68 include the Temporary Lodging Allowance (TLA). TLA is covered on the BAH page on this site.

OCONUS COLA Is Non-Taxable

OCONUS COLA is non-taxable income. It is not included in W-2 wages and is not subject to federal income tax. This contrasts with CONUS COLA, which is taxable.

The OCONUS COLA Index

Per Chapter 68 paragraph 2.1.4, the OCONUS COLA index represents how much more expensive it is to purchase goods and services OCONUS compared to the same level of goods and services in an average CONUS location.

• An OCONUS COLA index of 110 indicates prices in the OCONUS area are 10 percent more expensive than in CONUS.
• An index of 100 indicates the overall cost of goods and services surveyed at the OCONUS location is approximately the same as in CONUS, and no COLA is warranted.
• A higher index produces a higher OCONUS COLA payment.

Vicinity Definition

Per Chapter 68 paragraph 2.1.1, the vicinity is the entire country, U.S. territory or possession, or state when in Alaska or Hawaii where the Marine's PDS is located. When a Marine resides with a dependent and commutes to the PDS, the dependent is considered to be residing at or in the vicinity of the PDS even if in an adjacent country or state.

Service Member With a Dependent

Per Chapter 68 paragraph 2.1.5, a Marine is considered with-dependent if any of these criteria apply.

• The Marine is authorized to have a dependent reside at or in the vicinity of the PDS OCONUS, and the dependent resides there.
• Other criteria specified in the chapter.

Government Dining Facility and Government Quarters

Per Chapter 68 paragraph 2.1.2, Government dining facilities operate using appropriated funds and provide meals to Marines with or without charge. Common terms include Government mess, general mess, dining hall, dining activity, mess hall, galley, field kitchen, flight kitchen.

Per paragraph 2.1.3, Government quarters include individual quarters provided with or without charge under agreement with the Government. Barracks are Government quarters for COLA purposes, including dormitory and quarters aboard ship.

OCONUS COLA Eligibility

Per Chapter 68 paragraph 2.2, a Marine is eligible for OCONUS COLA if assigned to a PDS OCONUS where the OCONUS COLA index exceeds 100, OR if a command-sponsored dependent is in the PDS vicinity. The with-dependent rate applies when the Marine is authorized OCONUS COLA based on the dependent's presence.

OCONUS COLA Start

Per Chapter 68 paragraph 3.2.1, OCONUS COLA generally starts on.

• The day the Marine reports to a new PDS.
• The effective day of a home port change.
• The day the dependent arrives at the new PDS or new home port (if before the Marine arrives).

If the Marine is authorized monetary allowance in lieu of transportation plus per diem (MALT Plus) on the reporting day, OCONUS COLA starts on the day after the reporting day.

OCONUS COLA Stop

Per Chapter 68 paragraph 3.2.2, OCONUS COLA stops the day before the Marine departs OCONUS on a PCS order, or the day before the effective date of a ship's or unit's home port change, unless any of the following apply.

• An extension is authorized through the Secretarial Process.
• OCONUS COLA is authorized during a PCS between PDSs in close proximity when the Marine continues to commute from the residence at the old PDS.
• A Marine without a dependent undergoes a home port change and Government quarters aboard ship are not available (e.g., dry dock).

OCONUS COLA for Service Member With a Dependent

Per Chapter 68 paragraph 3.3, a Marine with a dependent is authorized OCONUS COLA based on the number of command-sponsored dependents at the PDS vicinity, regardless of Government dining facility availability. This includes when the Marine has a dining facility aboard ship available.

The Marine is authorized OCONUS COLA for all command-sponsored dependents, including a Federal employee who is a spouse or child and eligible for a post allowance in their own right.

Home Port Change

Per paragraph 3.3.1, if a Marine is currently assigned to a ship or fleet unit with an announced home port change, and a dependent is authorized to travel to the new home port, the new home port is the Marine's PDS for COLA purposes.

Evacuation

Per paragraph 3.3.3, if a Marine's PDS is evacuated, OCONUS COLA at the with-dependent rate stops on the dependent's departure date due to evacuation. Until the dependent returns, the Marine is considered without a dependent for OCONUS COLA purposes. When a dependent is evacuated from OCONUS or CONUS to reside at an authorized designated place OCONUS, the Marine is authorized OCONUS COLA at the with-dependent rate for the designated place beginning the day after per diem stops.

OCONUS COLA for Service Member Without a Dependent

Per Chapter 68 paragraph 3.4.

Reduced OCONUS COLA

When both Government quarters AND a Government dining facility are available, the Marine is paid a reduced OCONUS COLA. The reduced rate is calculated using a fixed percentage of the OCONUS COLA rate for a Marine with no dependents living in private-sector housing.

Dining Facility Availability

The decision to authorize OCONUS COLA for a Marine without a dependent depends on.

• Whether the dining facility is in fact available to the Marine.
• Whether the Marine is expected to purchase food for preparation in Government quarters.
• Whether the Government quarters have facilities to keep and prepare meals.

Two Married Service Members

Per Chapter 68 Table 68-5, OCONUS COLA for two Marines married to each other follows specific rules. Generally one spouse receives OCONUS COLA at the with-dependent rate (if children are command-sponsored) and the other receives the without-dependent rate.

OCONUS COLA Calculations

Per Chapter 68 paragraph 3.10 and Tables 68-8 and 68-9, OCONUS COLA is calculated annually and paid monthly. The calculation factors in.

• OCONUS COLA index.
• Spendable income (based on pay grade and YOS).
• Number of command-sponsored dependents.
• Government quarters and dining facility availability.

Rate Source

The OCONUS COLA rate table is published at https://www.travel.dod.mil/Allowances/Overseas-Cost-of-Living-Allowances/.

OCONUS COLA Unique Expenses

Per Chapter 68 paragraph 3.1.6, certain OCONUS locations qualify for OCONUS COLA Unique Expense reimbursement (e.g., specific country fees, mandatory taxes that the Marine pays out of pocket). The reimbursement is processed through the Service representative per the DoD Overseas Station and Housing Allowance Process Guide.

Reserve Component Members

Per Chapter 68 Table 68-7, RC Marines called or ordered to AD from OCONUS qualify for OCONUS COLA based on the AD PDS and command-sponsored dependents.

Verifying OCONUS COLA on the LES

A monthly LES check confirms OCONUS COLA entries are correct.

Step 1. Pull Your LES

Through MyPay each payday at the OCONUS PDS.

Step 2. Verify the OCONUS COLA Line

The LES shows OCONUS COLA as a line item under Entitlements. Verify the rate against the DTMO OCONUS COLA table for your PDS, pay grade, YOS, and command-sponsored dependent count.

Step 3. Verify Government Quarters and Dining Facility Status

For Marines without dependents, verify the LES reflects the correct quarters and dining status. The reduced rate applies only when both Government quarters AND a Government dining facility are available.

Step 4. Resolve Discrepancies

Coordinate with your S-1. The reporting unit (I&I S-1 with direct UD/MIPS access, or a battalion S-1 routing through their PAC) routes through DFAS Marine Corps Pay.

Common Questions Marines Ask

I am at MCAS Iwakuni with my command-sponsored family. Do I get OCONUS COLA?

Per Chapter 68 paragraph 3.3, yes if the Iwakuni OCONUS COLA index exceeds 100. The rate is based on the number of command-sponsored dependents at the PDS vicinity, your pay grade, and YOS. Verify the current rate against the DTMO OCONUS COLA table.

I am stationed at Camp Hansen, Okinawa, single, in the BEQ with the dining facility available. Do I get OCONUS COLA?

Per Chapter 68 paragraph 3.4.1, yes at the reduced OCONUS COLA rate. The reduced rate is a fixed percentage of the standard without-dependent rate because Government quarters and a Government dining facility are both available.

I PCS from Okinawa to Camp Pendleton. When does OCONUS COLA stop?

Per Chapter 68 paragraph 3.2.2, OCONUS COLA stops the day before you depart OCONUS on the PCS order. CONUS COLA at the new PDS (if a high-cost area) starts on the day you report to the new PDS.

What is the difference between OCONUS COLA and the OHA (Overseas Housing Allowance)?

OCONUS COLA covers the cost of goods and services (food, services, etc.). OHA covers housing costs OCONUS (rent and utilities). Both are non-taxable. Both are paid concurrently when applicable. OHA is governed by Chapter 26 of Volume 7A.

Is OCONUS COLA taxable?

No. OCONUS COLA is non-taxable income. It is not included in W-2 wages.

Where to Go for Help

Routing by Issue

• OCONUS COLA rate verification. The DTMO OCONUS COLA table at https://www.travel.dod.mil/Allowances/Overseas-Cost-of-Living-Allowances/.
• Command-sponsored dependent status. Coordinate with your S-1 to verify command sponsorship is on file.
• LES corrections for OCONUS COLA. Your S-1 routes through DFAS Marine Corps Pay.
• OCONUS COLA Unique Expense reimbursement. The Service representative per the DoD Overseas Station and Housing Allowance Process Guide.
• DFAS Marine Corps Pay direct contact. Phone 1-888-332-7411 (DSN 312-571-9450 from overseas).

Where to Go Next on This Site

• Pay and Entitlements landing page lists all the pay topics.
• BAH covers OHA (the OCONUS housing allowance) and TLA (the lodging allowance).
• CONUS COLA covers the parallel CONUS allowance.

Related Roles

• Leaders surface OCONUS COLA eligibility for Marines arriving at OCONUS PDS locations.
• Admin at S-1 processes OCONUS COLA starts and stops on PCS through the reporting unit, including command sponsorship verification.
• Commanders certify command sponsorship for dependents and verify OCONUS COLA entitlement during PCS reviews.

OCONUS COLA equalizes purchasing power for Marines stationed OCONUS. The OCONUS COLA index drives the rate. Command-sponsored dependents drive the with-dependent rate. The reduced rate applies when Government quarters and dining facility are both available.